http://www.alternet.org/story/37920/
AlterNet:
Capitalism That Works For All

By Frances Moore Lappé, AlterNet. Posted June 23, 2006.

In a region of northern Italy, the author of 'Diet For a Small 
Planet' discovered a cooperative approach to living that actually 
enhances human dignity.

A market economy and capitalism are synonymous --- or at least joined 
at the hip. That's what most Americans grow up assuming. But it is 
not necessarily so. Capitalism -- control by those supplying the 
capital in order to return wealth to shareholders -- is only one way 
to drive a market.

Granted, it is hard to imagine another possibility for how an economy 
could work in the abstract. It helps to have a real-life example.

And now I do.

In May I spent five days in Emilia Romagna, a region of four million 
people in northern central Italy. There, over the last 150 years, a 
network of consumer, farmer and worker-driven cooperatives has come 
to generate 30 percent to 40 percent of the region's GDP. Two of 
every three people in Emilia Romagna are members of co-ops.

The region, whose hub city is Bologna, is home to 8,000 co-ops, 
producing everything from ceramics to fashion to specialty cheese. 
Their industriousness is woven into networks based on what 
cooperative leaders like to call "reciprocity." All co-ops return 3 
percent of profits to a national fund for cooperative development, 
and the movement supports centers providing help in finance, 
marketing, research and technical expertise.

The presumption is that by aiding each other, all gain. And they 
have. Per person income is 50 percent higher in Emilia Romagna than 
the national average.

The roots of Emilia Romagna's co-op movement are deep -- and varied.

Here in the United States, many assume that Catholicism and socialism 
are irreconcilable. In Italy, it's different. Socialist theorist 
Antonio Gramsci's critiques of capitalism were a major influence on 
Italy's post-war Left. Although he was imprisoned by Mussolini in 
1926 and died still under guard 11 years later at age 46, Gramsci's 
ideas took hold. Simultaneously, the Church came to appreciate the 
role of cooperatives in strengthening family and community -- as 
spelled out by Pope John XXIII's 1961 encyclical.

The shared values of the two traditions -- honoring labor, fairness 
and cooperation -- made them partners in standing up for co-op 
friendly public policies and in creating co-op support services.

Of the three main national cooperative alliances, the two largest in 
Emilia Romagna are the Left's Legacoop, with a million members, and 
Confcooperative, the Catholic alliance with more than a quarter of a 
million members.

During the 1920s, the fascists destroyed both the cooperative and the 
union movements. But after World War II, the movements regrouped to 
rebuild war-torn Italy. Farmer and worker cooperatives put people 
back to work. Retail cooperatives helped consumers and housing co-ops 
build new dwellings. Since 1945, the housing cooperatives affiliated 
with Legacoop alone have built 50,000 units in Emilia Romagna.

Curious about the differences that remain between the two historical 
strains, I questioned Davide Pieri, the energetic thirtysomething who 
heads the agricultural section of Confcooperative.

His response?

"Mainly the history and personalities at the top," he said, grinning 
as we headed out to see a co-op in action.

It is 7 a.m. when Davide picks up my partner Richard Rowe and me at 
our hotel in Bologna for a quick trip to a creamery on the outskirts 
of town that makes Parmigiano-Reggiano -- or Parmesan, to us. Almost 
400 small cooperatives in Emilia Romagna make this specialty.

By 8 a.m. we're watching the morning ritual at the Nuova Martignana 
co-op: intensely focused workers stirring the fermenting milk 
mixtures in a dozen hot tub-sized copper vats. They are waiting for 
just the right consistency before using giant cheese cloths to gather 
the embryonic cheese into rounds.

Davide is distressed by WTO rules seeking to standardize and 
de-localize such place-based specialties. As we stand watching the 
cheesemakers testing the mixture, he seems to rebut that approach: 
"Look!" he exclaims. "These are artists they are tasting with their 
hands!"

In Bologna we also had the chance to sit down with the scholar of 
cooperation, professor Stefano Zamagni, whom Davide called "our 
prophet."

"Labor is an occasion for self-realization, not a mere factor of 
production," Zamagni, an economist, writes. Cooperation offers a way 
beyond the dehumanization of capitalism that fully uses the 
advantages of the market.

Ten years ago he launched a graduate program in civil economies and 
cooperation within the University of Bologna's economics department. 
So far it's graduated 250 students.

Another surprising feature of the culture is that, beginning in 1991, 
responsibility for social services in Emilia Romagna and other 
regions was transferred almost entirely to "social cooperatives." For 
those providing services such as job placement, 30 percent of the 
staff must come from the population served and, if possible, be 
members of the co-op. Certain tax benefits are provided to these 
"social co-ops."

The approach seemed another smart way to enhance human dignity, 
breaking down degrading divisions between the helper and the helped.

Because Davide exuded such passion for his work, I probed what had 
brought him to it. "Out of the university, I worked for a capitalist 
firm," he said. "But it wasn't for me. It was dog-eat-dog. So I tried 
working on my own, as a consultant. But after a year, I realized that 
wasn't for me either. So I took this job with the cooperatives.

"This is the interpretation of life that I enjoy," he said.

View a slideshow (pdf) of the author's visit to Italian co-ops.

Frances Moore Lappé's latest book is "Democracy's Edge: Choosing to 
Save Our Country By Bringing Democracy to Life." For more 
information, visit smallplanetinstitute.org.

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